The Local Government minister has directed Mbarara City Council to verify market occupants and ensure stalls intended for low-income traders are operated by their rightful beneficiaries.
Local Government Minister Balaam Barugahara has directed people who rent out stalls and lock-up shops at Mbarara Central Market to vacate the premises, accusing them of exploiting traders by charging inflated rents.
Barugahara issued the directive during an unannounced inspection of the multi-billion-shilling market in Mbarara, following concerns that some people had taken over public market facilities and were subletting them to vendors at high rates.
The minister said the government-funded market was established to support low-income earners and small-scale traders, not to provide investment opportunities for people who occupy stalls solely to collect rent.
“These stalls were built by the government to benefit low-income earners who are trying to earn an honest living, not landlords who grab space only to rent it out at inflated rates,” Barugahara said.
He questioned why traders were reportedly being charged as much as Shs150,000 a month for a lock-up shop in a public market intended to serve small-scale entrepreneurs.
“The rightful beneficiaries must be the ones operating inside these stalls. How do you charge Shs150,000 for a lock-up shop in a public central market?” he said.
To address the concerns, Barugahara announced a proposed standard monthly rent structure under which payments would be made directly to Mbarara City Council.
The rates he announced are:
- Lock-up shop operators: Shs80,000 per month
- Fish vendors: Shs30,000 per month
- Fruit and produce vendors: Shs20,000 per month
The minister said the proposed rates were intended to protect traders from arbitrary charges imposed by intermediaries and make operating in the market more affordable.
He also directed the city authorities to conduct a fresh registration exercise to establish the identities of people occupying the market facilities and determine whether they are the actual traders or are renting the spaces to others.
“I want the city to immediately cause re-registration of the vendors so that the rightful owners who actually operate from these stalls and lock-ups are identified. I have gotten some names of some of the landlords, and we shall follow the right procedures to probe them,” Barugahara said.
The exercise is expected to establish a verified list of active traders, paving the way for eligible occupants to enter into tenancy agreements directly with the city council and reducing the role of middlemen.
Mbarara Central Market has previously faced disputes over rental charges, with vendors petitioning city authorities over fees they said were too high for their businesses. In 2023, the city authorities announced reductions in some rental charges following complaints from traders. <Cite refs={["turn731541search0","turn731541search1"]}/>
In 2024, vendors also raised concerns about tenancy agreements and the process of verifying who was entitled to occupy the market facilities. <Cite refs={["turn731541search4"]}/>
Barugahara said people found to be improperly occupying or subletting public market facilities would be investigated in accordance with the appropriate procedures.
The proposed rent structure and registration exercise are intended to ensure that the market serves the traders it was built to support.